Trade relations between the US and China have become even more complex

Described as “rational and pragmatic,” the discussions focused on the need to clearly define security boundaries, avoid overgeneralization and politicization of security issues, and refrain from weaponizing trade and trading activities with CHINA.

Wang stressed the importance of fair treatment for Chinese companies investing in the US , saying competition should be based on international economic and trade rules and be fair and constructive. He expressed China's willingness to work with the United States to create a favorable business environment that could boost bilateral trade.

Schumer expressed Washington's desire to strengthen ties and exchanges with Beijing. He stressed that both parties support maintaining and expanding bilateral economic and trade relations, stressing that there is no intention to "detach" from China.

Before the American delegation left for China, the US Commerce Department added 42 more Chinese companies to its EXPORT blacklist, accusing them of offering technical support to RUSSIA.

Concerns about trade restrictions were also discussed during the delegation's meeting with Chinese President Xi Jinping, who stressed that the two countries do not necessarily need to HEAD to confrontation, highlighting the deep interdependence of their economies. US senators stressed the need to create a level playing field and called on China to lift restrictions and open its markets to US companies, especially in the semiconductor, financial and aerospace industries. In recent months, China has imposed restrictions on the activities of several American companies over security concerns.

Chinese property developer Country Garden has announced it will be unable to meet its offshore payment obligations, marking its first ever default. The Company has taken steps to appoint financial and legal advisers to assess its capital structure and liquidity. Country Garden's financial woes have attracted significant attention, becoming emblematic of the broader real estate debt crisis in China. This crisis has raised concerns about its potential impact on social stability within the country.

China is considering widening its 2023 budget deficit to support the economy amid concerns about economic growth. Policymakers are reportedly considering issuing at least 1 trillion yuan (approximately US$137 billion) of additional sovereign debt to finance infrastructure projects such as water conservation initiatives. The move could potentially push the annual budget deficit above the 3% limit set earlier this year. The potential stimulus marks a change in approach for Beijing, which has so far avoided broader fiscal measures despite a deepening housing crisis and rising deflationary pressures that threaten its target growth rate of about 5% this year.

  The news had an immediate impact on financial markets, with the offshore yuan rebounding and government bond yields rising slightly. Market participants are closely watching the official announcement, which could come as soon as this month.